Life Sciences Sector Expectations from EU Budget 2024-2025, Health News, ET HealthWorld

Mumbai: The Indian government will present the Union Budget for 2024-25 to Parliament in July. The life sciences sector has envisaged policies that will help in terms of tax relief and acceleration of research and development. The sector also wants public-private partnership (PPP) to be a priority and GST to be reduced.

Sharing his expectations from the Budget 2024-25, Sudarshan Jain, Secretary General, Indian Pharmaceutical Alliance, said, “The Indian pharmaceutical industry has played a key role in shaping global health outcomes by providing affordable, high-quality medicines. The industry is at a critical juncture, with an aspiration to grow to $120 billion by 2030. The policy direction should leverage the knowledge-based foundation of the industry and its status as a global manufacturing hub. Emphasis should be placed on quality and innovation. Given the high risk, long development periods and low research success rates, continuous investment is crucial. The Budget 2024-25 should introduce policies that provide direct and indirect tax benefits to encourage research and investment with the aim of becoming a global benchmark in quality.

Ameera Shah, Executive Chairman and CEO, Metropolis Healthcare Limited, said the diagnostics sector plays a crucial role in early detection of diseases and tailoring treatment and is crucial for India’s development.

She said: “We urge the new government to prioritise optimising public-private partnership (PPP) models to deliver high-quality, positive and impactful outcomes. Increased funding for screening and diagnostic programmes targeting non-communicable diseases (NCDs) such as cancer and heart disease is essential. Investing in training for doctors, nurses and allied health workers will further improve the quality of care.”

Shah added, “Introducing zero GST on diagnostic services and facilitating refunds of GST paid on input tax credits can reduce costs and improve accessibility. Reduction in customs duty on imported diagnostic equipment and adjustment of high GST rates on laboratory supplies will increase efficiency and encourage investment in R&D. These measures will go a long way towards achieving our shared goal of providing accessible, quality healthcare for all. We look forward to working with the government to deliver on these priorities and ensure continued growth and improvement of the healthcare sector in India.”

The upcoming Union Budget 2024-25 could boost the life sciences sector with policies that support innovation and affordability. The industry is expecting tax breaks that will encourage more research and development in the country, while a reduction in GST on healthcare and diagnostic services could improve accessibility and affordability of essential healthcare services.